Economy of Luthori
The Luthori Empire practices a free market economy, with very little government intervention. Inflation is very low due to the gold standard the Luthorian Pound is tied to and the economy generally grows at a fast rate with little to no recent slowdowns. Unemployment is almost consistently around 8%, taking an average of the unemployment rate of each Duchy. Unlike most free market economies, the Luthorian economy is dominated by very large companies, which employ some 70% to 80% of the workforce, while small businesses employ some 15% of the workforce while the government accounts for just 5% to 7%. Despite often being governed by long established aristocrats, economic mobility is extremely high in the average Luthorian firm and it is easy to climb the corporate ladder. Almost every major company is a member of one of two trade blocks, the East Luthori Trade Syndicate (ELTS) and the Bane Consortium, which are large economic and business alliances in their own right. A large majority of Luthorian big business is made up of corporations, which are publicly traded on the Fort William Mercantile Exchange (FWME) or the Sandulka Stock Exchange (SSE), the nation's largest stock markets. The Luthori Employer's Association (LEA) defends free market economics and Luthorian entrepreneurship throughout the empire. The Central Bureau is located in Adlerberg and has connections all over the empire and is often described by malevolent tongues as "world capitalism's spider in the web". It is an economical hub for the Luthorian Empire. The LEA is also responsible for representing employers in labour disputes and is also a coordinator concerning colonial trade and exploitation. Industry Because of its free market economy and consequential low corporation tax as well as very lax regulations and excellent infrastructure, Luthori remains an extremely attractive site for the construction and maintaining of factories. Furthermore, most major Luthorian cities have factory districts where workers create a wide-range of consumer and industrial goods. Despite the significant presence of manufacturing industries the financial services industry is alive and well in Luthori, with cities, particularly in Geharon, serving as hubs for banking, investment and insurance companies. The defence sector is also notable for the astronomical amount of money Luthori spends on defence. Defence contractors compete to create the best and most technologically advanced products in order to catch the eyes of Imperial procurement officers whose jobs are on the line if they do not choose the best product for the military. Since demand is always high, the defence industry has become one of Luthori's largest sectors and is also responsible for exporting military equipment to Luthori's colonies and allies. However, the sector where the most money is made in Luthori is the energy sector. Hexlon Imperial, by far Luthori's largest corporation, started out as an energy company. Thanks to abundant petroleum, natural gas and uranium reserves in the colonies, Hexlon and others have managed to make huge profits from selling energy at very low prices but to a huge pool of customers. Category:Economy of Luthori